Friday Five – 16 August – 5 Questions in 5 Minutes

Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday

What’s this all about?

It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

IMPORTANT!  These questions relate to examinable tax year 2018/19, examinable by the CII until 31 August 2019.  They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.

1. The Prudential Regulation Authority (PRA) is part of which of the following?
   1. The Bank of England
   2. The Financial Conduct Authority
   3. The Association of British Insurers
   4. The Treasury

2. What are the main sectors of the commercial property market? Tick all that apply.
   1. Office buildings
   2. Multi-tenanted buildings
   3. Out of town units
   4. Garages
   5. Retail

3. Two clients hold the following investments:
   

   Name	Bond Type	Purchase Price	Current Value	Term Held
   Mabel	Onshore	£50,000	£60,000	5 years, 3 months
   Rachel	Offshore	£70,000	£60,000	4 years

   Assuming no withdrawals have been made from either investment, you can advise Mabel and Rachel that:
   1. On encashment, both Mabel and Rachel will be subject to capital gains tax.
   2. Mabel can withdraw £15,000 without triggering a chargeable event.
   3. Rachel can withdraw £15,000 without triggering a chargeable event.
   4. Only Mabel can benefit from top-slicing.

4. Being “fit and proper” to undertake the role is a test that could be used by the Pension Regulator in assessing the appropriateness of the:
   1. Scheme Administrator
   2. Scheme Trustee
   3. Employer
   4. Scheme Actuary

5. Susan has a mortgage payment protection insurance policy. If she makes a claim on becoming unemployed, the very maximum amount of time for which benefits will be paid is usually:
   1. 9 months
   2. 12 months
   3. 18 months
   4. 24 months

Answers

1. A – See R01 Study Text, Chp 5:1
   Grab our taster mock exam paper for CII R01. Click here to download.

2. AE – See R02 Study Text, Chp 1:2
   Grab our taster mock exam paper for CII R02. Click here to download.

3. B – See R03 Study Text, Chp 10
   Grab our taster mock exam paper for CII R03. Click here to download.

4. B – See R04 Study Text, Chp 3
   Grab our taster mock exam paper for CII R04. Click here to download.

5. D – See R05 Study Text, Chp 9
   Grab our taster mock exam paper for CII R05. Click here to download.

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.